Question mortgage/ bank referrals related

lanlee11

I have a 45k mortgage with barclays but quite a lot on credit cards and we are struggling to keep up with payments. We have decided to consolidate our outstanding debt into the mortgage as additional borrowing

Im half way through the application with an advisor and dont have phone appt with him until tuesday but needed some advice/help as I've no way to contact him

They need 3 month bank statements but every month i have referral fee for going over overdraft, unpaid dd etc
Obviously the reason for consolidation is to reduce our monthly outgoings and stop this happening but are we likely to get turned down because of these fees? Our credit according to experian is excellent but these fees are worrying me

Any help welcome
Thanks

kingstreet

Existing mortgage is Barclays.

Who is the new lender? Barclays again using a further advance? What's the rate? Have you looked at remortgage options to get the whole amount on a better rate?

Who is your current account provider?

What do the other versions of your credit file show?

lanlee11

New mortgage (additional borrowing) with barclays as im tied in my current mortgage until june 14

Haven't looked at other credit reports. Do they often show different info?

My main concern is being turned down due to the referral fees showing on my bank account. Do they do this?

Thanks

kingstreet

The three different versions of your credit file will show different information, depending on the CRA(s) used by the lenders with whom you have credit commitments.

Can your mortgage lender see your current account conduct?

lanlee11

Not at the minute but i assume they will want bank statements at sone point

kingstreet

Right. So you don't have your current account with Barclays.

If you do have to submit bank statements and the last three months is littered with unpaids and unauthorised borrowing charges, you are likely to be declined, IMHO.

Clearing banks do not like poor current account conduct.

It may be an idea to look at secured loan options. This could bridge the period until your ERP ends next year, then you can remortgage. It will be at a higher rate, but you should still save money over credit card payments.

Thrugelmir

Mainstream lenders aren't really in the market for debt consolidation. As while it helps the borrower(s) with their outgoings. Doesn't resolve the fundamental issue as to why. Coupled with fact that statistically many people "reoffend" again in the future. Doesn't make sensible lending policy.

Have you spoken to the National Debt Help Line? It's a free charge number to call.

Get yourself over to the Debt Free Wannabe board. Loads of support and advice on that forum. From people in equally as difficult situations.